Real GDP can grow/increase for two reasons, but which one represents economic growth? ○ The economy might be returning to full employment in an expansion phase of the business cycle. O Potential GDP might be increasing. ○ The return to full employment in an expansion phase of the business cycle. O Noen of the above are correct.

What are typical GDP patterns for a high-income economy like the United States in the long run and the short run?

As technological change makes us more sedentary and food costs increase, obesity is likely. What factors do you think may limit obesity?

Use an example to explain why, after periods of rapid growth, a low-income country that has not caught up to a high-income country may feel poor.

For a high-income economy like the United States, what aggregate production function elements are most important in bringing about growth in GDP per capita? What about a middle-income country such as Brazil? A low-income country such as Niger?

An economy starts off with a GDP per capital of 12,000 euros. How large will the GDP per capita be if it grows at an annual rate of 3 for 10 years? 3 for 30 years? 6 for 30 years?

Say that the average worker in Canada has a productivity level of 30 per hour while the average worker in the United Kingdom has a productivity level of 25 per hour (both measured in U.S. dollars). Over the next five years, say that worker productivity in Canada grows at 1 per year while worker productivity in the UK grows 3 per year. After five years, whiz) will have the higher productivity level, and by how much?

Are there other ways in which we can measure productivity besides the amount produced per hour of work?

Say that the average worker in the U.S. economy is eight times as productive as an average worker in Mexico. If the productivity of U.S. workers grows at 2 for 25 years and the productivity of Mexicos workers grows at 6 for 25 years, which country will have higher worker productivity at that point?

Would the following events usually lead to capital deepening? Why or why not? A weak economy in which businesses become reluctant to make long-term investments in physical capital. A rise in international trade. A trend in which many more adults participate in continuing education courses through their employers and at colleges and universities.